A new company, Ryan Inc., has hired you to set-up the Human Resources Department. As part of its community outreach programs, Ryan Inc. would like your department to provide career counselling services to individuals in the neighbourhood. The fixed costs to run this service are $70,000. You estimate that each career counselling session will cost $240 (the estimated per diem cost for the counsellor). You have been given a budgeted appropriation of $100,000 for all costs. 1. Given your current budget above, how many individuals would you be able to serve? 2. After a successful launch of the program, you would like to expand it to serve 150 individuals. The cost per session will remain the same but you believe that additional administrative support is necessary. You are proposing to hire a support person for the department who would also support the program 25% of their time. The total additional cost to the program is estimated to be $10,000. How much budget should you request to serve the 150 individuals?
A new company, Ryan Inc., has hired you to set-up the Human Resources Department. As part of its community outreach programs, Ryan Inc. would like your department to provide career counselling services to individuals in the neighbourhood. The fixed costs to run this service are $70,000. You estimate that each career counselling session will cost $240 (the estimated per diem cost for the counsellor). You have been given a budgeted appropriation of $100,000 for all costs. 1. Given your current budget above, how many individuals would you be able to serve? 2. After a successful launch of the program, you would like to expand it to serve 150 individuals. The cost per session will remain the same but you believe that additional administrative support is necessary. You are proposing to hire a support person for the department who would also support the program 25% of their time. The total additional cost to the program is estimated to be $10,000. How much budget should you request to serve the 150 individuals?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 33P: Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and the...
Related questions
Question
100%
Please answer the 2 questions below
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning